By Mulengera Reporters
A bold vision to transform Uganda into a $500 billion economy has been laid out, with a strong warning that the country risks missing out unless it urgently empowers its private sector.
Presenting before National Resistance Movement Members of Parliament at the National Leadership Institute Kyankwanzi over the weekend, Dr. Aisha Ruth Biyinzika Kasolo, Board Member of the Presidential CEO Forum and Director at the Private Sector Foundation Uganda, painted a picture of a country on the brink of major economic takeoff — but facing critical challenges.
Uganda’s economic journey has already seen dramatic progress. From runaway inflation levels of over 200 percent in the late 1980s, the country has stabilized its economy and grown its GDP to about 65 billion dollars. Growth remains steady, with the economy expanding at over 6 percent and expected to rise further as oil production begins.
But beneath this progress lies a deeper problem.
Dr. Kasolo highlighted that Uganda’s economy is still heavily dependent on low-productivity sectors. Agriculture employs over 70 percent of the population but contributes just a fraction of the national output. At the same time, the country continues to export raw materials instead of finished goods, losing billions in potential earnings.
She warned that without a shift toward value addition and industrialization, Uganda’s growth may not translate into real wealth for its citizens.
The solution, she emphasized, lies in building a strong, competitive private sector supported by targeted government investment.
Key sectors such as tourism, agriculture, and mining were identified as areas with massive untapped potential. Uganda’s tourism industry, for instance, is already attracting over one million visitors annually and generating more than a billion dollars in revenue. However, poor access roads continue to limit growth, locking out even greater earnings.
In the minerals sector, Uganda is sitting on vast resources including gold, iron ore, and copper. Despite gold exports surging to billions of dollars, the country retains only a small share of the value because most of it is exported in raw form.
Agriculture, described as the backbone of the economy, is also underperforming. While Uganda leads Africa in coffee exports, most of it is sold as raw beans, missing out on the higher profits that come with processing and branding.
Dr. Kasolo stressed that reducing the cost of doing business is critical. High energy costs, expensive transport, and limited access to affordable finance continue to choke private sector growth. Without addressing these barriers, industrialization will remain slow.
She also raised concern about the growing mismatch between education and employment. With a youthful population and hundreds of thousands entering the job market each year, many young people are unable to find work due to lack of practical skills. She called for stronger investment in technical and vocational training to prepare a workforce that meets industry needs.
A successful example of what is possible was highlighted through Quality Chemical Industries Limited, a local pharmaceutical manufacturer that has reduced dependence on imported medicines, created skilled jobs, and expanded exports through strong government and private sector collaboration.
Dr. Kasolo urged lawmakers to take bold action by creating a pro-business environment, strengthening public-private partnerships, and promoting Uganda as a global destination for investment and tourism.
She also called for deliberate efforts to empower women economically, noting that inclusive growth is essential for long-term national prosperity. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
